CashBackApp, a Cashback reward platform based in Kenya, has raised almost $500,000 in its pre-seed funding round.
The startup raised a total sum of $475,000 in the round and saw participation from VC firms and angel investors. Investors that participated in the round include Lofty Inc, Sherpa Ventures and Loyal VC, and angel investors across Nigeria, the UK, the US, and home country Kenya. With the acquired funds, CashBackApp plans on bringing its business to scale and fueling all its expansion plans to other countries in Africa.
CashBackApp is the brainchild of Simon Ngigi and was founded in 2019. Allan Thiga also joined as a co-founder to help push the startup. What CashBackApp does is that it creates an enabling system and/or platform that customers who patronize companies that produce fast-moving consumer goods (FMCG)companies can earn Cashback rewards from. This system is powered by Kenya’s biggest mobile money company, M-Pesa.
In other words, when customers make purchases of products promoted on the app from the supermarkets and stores that have them, they earn a cashback reward from the platform.
CashBackApp has made progress since it became operational in 2019. The startup claims to have at least 45,000 downloads across various app stores and that its user base grew at a monthly compounded rate of 38 percent in the first six months of this year.
CashBackApp’s partners include global FCMGs like Colgate, Coca-Cola, and Ajab, and it has a retailer network consisting of Kenya’s biggest multi-chain retailers. These retailers include Khetias, Eastmatt, Mulleys, and Jamaa.
Right now, CashBackApp’s biggest goal is to get to at least one million shoppers by the year 2022.
Kenya startups are doing quite well and although their achievement doesn’t quite measure up to their Nigerian and South African counterparts, they are doing an impressive job and have so many potentials and many more to offer.
Managing Partner of Lofty Inc Capital Management, Idris Ayodeji Bello, showed excitement about their investment in the startup stating that they are excited to be a part of CashBackApp as the company is pushing to help reduce the alarmingly increasing budget of shoppers. “Apart from helping consumers save money, they are also helping FMCGs understand their markets and customers better through quality data and actionable insights. This is in line with our investment thesis of backing world‐class teams of local Africans who are leveraging innovation to solve significant problems”, he said.